HOW DO WE SAVE MONEY?
By Valerie Lunden, MA

Is saving money a science? The behaviors of men and women in regards to saving money appear quite contrary. Current economic growth indicators and the increased debt ratios documented on the U.S. Department of Labor Bureau of Labor Statistics* website suggest that both groups in the US spend with abandon, and from general consensus there are several acceptable styles of both accumulation and spending. For women in particular being labeled a "Spender" or a "Saver" is inconsequential. Saving for the future has become unavoidable, necessary and important, and possibly every woman (and man) should have a system that they can stick with and maintain.

If you're a beginning Saver how to begin is the real question? The most challenging aspect is modifying past money spending behaviors and understanding how much to save. This last part, how much to save, could be a guessing game. Life expectancy for both men and women has improved, and planning for those unexpected financial catastrophes could be difficult.

If the desire is to find a reasonable money saving system, or improve a system already in place the book entitled The Richest Man In Babylon by George Classon offers a sensible plan. This classic written in 1926, without a doubt has endured the test of time. As a money management book the style is unique, offering a fictional tale about the people of Babylon, from the richest to the poorest. The premise suggests that accumulating WEALTH is very possible when a plan is in place. Perhaps this book has endured because the basic process has been modified and implemented time any time again throughout history by governments and money managers. Read it and understand why. The most important rule is after beginning the plan, stick to it like glue!

The following is a MONEY PERFORMANCE plan for starting an at home saving's program. THE MONEY PERFORMANCE WAY utilizes SOCKS. Would it be a correct assumption that lots of people own socks? No need to go out and buy special piggy banks, jars or bank accounts, which often charge fees. Socks are accessible and plentiful. Of course, it is highly recommended that you don't use your favorite pair and that you always use clean, laundered socks! You will also need a permanent marker, like a Sharpie. Label socks as follows:

• Future 10
• Monthly 55
• Learning 10
• Insurance 5
• Charity 10
• Fun 10

How could it be so simple? Well, it is! Again, the only requirement is that one must stick to the plan, no matter what happens financially. Whenever you get paid, divide your pay (checks or cash) into each SOCK. If the SOCK idea is too simplistic figure out how you can divide up you money without dipping into it.
The FUTURE SOCK should NEVER be touched, it is for investment only.

The MONTHLY SOCK is for food, shelter, clothing etc. If you tend to shop with abandon, designate a sensible amount from the MONTHLY just for shopping.

The LEARNING SOCK is vital. Whether it is an acting class or a course on financial freedom, Wealth Performance believes education is key to growing a healthy nest egg. Make every effort to always nourish your mind.

The CHARITY SOCK: always be giving. Of course, you decide to whom and how often. Choose an organization that you truly believe in.

The INSURANCE SOCK: well, we are an expensive society. This could also be called the unexpected SOCK. The idea here is to always be prepared!

FUN, have some. It is human nature to enjoy life. This sock will encourage love and laughter and perhaps even help remind you to celebrate every saving success!

Don't wait another minute. Start today!

*Department of Labor, Bureau of Consumer Statistics

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